BSE:502958

Stock Analysis Report

Executive Summary

The Lakshmi Mills Company Limited manufactures, trades in, and exports yarns in India.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Lakshmi Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 502958 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

502958

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-27.8%

502958

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: 502958 underperformed the Indian Luxury industry which returned 13.7% over the past year.

Return vs Market: 502958 underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

502958IndustryMarket
7 Day-2.6%-4.4%-3.5%
30 Day-0.8%-1.4%-3.9%
90 Day2.2%6.0%-2.1%
1 Year-27.6%-27.8%13.5%12.8%7.2%5.2%
3 Year-18.4%-19.1%45.8%44.0%18.9%12.4%
5 Year-8.4%-9.5%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

How volatile is Lakshmi Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lakshmi Mills undervalued compared to its fair value and its price relative to the market?

0.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 502958 (₹1900) is trading above our estimate of fair value (₹45.44)

Significantly Below Fair Value: 502958 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 502958 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 502958 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 502958's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 502958 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Lakshmi Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lakshmi Mills has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lakshmi Mills performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 502958 is currently unprofitable.

Growing Profit Margin: 502958 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 502958 is unprofitable, and losses have increased over the past 5 years at a rate of -47.6% per year.

Accelerating Growth: Unable to compare 502958's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 502958 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: 502958 has a negative Return on Equity (-1.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lakshmi Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 502958's short term assets (₹714.2M) do not cover its short term liabilities (₹968.1M).

Long Term Liabilities: 502958's short term assets (₹714.2M) exceed its long term liabilities (₹225.3M).


Debt to Equity History and Analysis

Debt Level: 502958's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: 502958's debt to equity ratio has reduced from 38.1% to 18.6% over the past 5 years.


Balance Sheet

Inventory Level: 502958 has a high level of physical assets or inventory.

Debt Coverage by Assets: 502958's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 502958 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 502958 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Lakshmi Mills's current dividend yield, its reliability and sustainability?

0.26%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 502958's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 502958's dividend (0.26%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: 502958 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 502958 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 502958 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 502958's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.7yrs

Average board tenure


CEO

Sundaram Pathy (70yo)

₹9,455,317

Compensation

Mr. Sundaram Pathy has been the Managing Director of Lakshmi Mills Co. Ltd. since April 24, 1996 and its Executive Chairman since June 11, 2009. Mr. Pathy has over 35 years in the field of textile and text ...


CEO Compensation Analysis

Compensation vs Market: Sundaram's total compensation ($USD131.65K) is above average for companies of similar size in the Indian market ($USD49.94K).

Compensation vs Earnings: Sundaram's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Sundaram Pathy
Executive Chairman0yrs₹9.46m17.75% 234.5m
Aditya Pathy
Deputy MD & Whole Time Director10.7yrs₹6.00m10.94% 144.6m
Sanjay Jayavarthanavelu
Non-Executive Non Independent Director9.6yrs₹125.00k1.9% 25.1m
Damotharan Rajendran
Non-Executive Independent Director13.2yrs₹135.00kno data
Bakthavatsal Vijay Venkatasamy
Independent Non Executive Director2yrs₹115.00k0.0010% 13.3k
Santharam Naidu
Vice Chairman9.5yrs₹200.00kno data
Satish Ajmera
Non-Executive Independent Director9.8yrs₹200.00kno data
Suguna Ravichandran
Non-Executive Independent Director5yrs₹175.00kno data

9.7yrs

Average Tenure

70.5yo

Average Age

Experienced Board: 502958's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Lakshmi Mills Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Lakshmi Mills Company Limited
  • Ticker: 502958
  • Exchange: BSE
  • Founded: 1910
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.322b
  • Shares outstanding: 695.55k
  • Website: https://www.lakshmimills.com

Number of Employees


Location

  • The Lakshmi Mills Company Limited
  • 67A, Sri Krishna Krupa
  • P&T Colony Main Road
  • Coimbatore
  • Tamil Nadu
  • 641 030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502958BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2001

Biography

The Lakshmi Mills Company Limited manufactures, trades in, and exports yarns in India. It operates through two segments, Textiles and Rental Services. The company offers combed cotton, polyester cotton blended, lenzing micro modal/modal/tencel, micro modal/modal cotton blended, micro tencel, tencel/cotton blended, and X-static yarns. It also manufactures and trades in grey, processed, and dyed fabrics, as well as school and corporate uniforms, and bed linen; and special products for use in nursing homes, hospitals, and operation theatres. In addition, the company leases properties. The Lakshmi Mills Company Limited was founded in 1910 and is headquartered in Coimbatore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:41
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.